Robert Micacle, 50, of Bellevue, was sentenced Monday in U.S. District Court in Seattle to 13 years in prison and three years of supervised release for mail fraud and tax evasion. The amount of restitution Micacle owes will be determined at a hearing July 25.
Micacle and two Malaysian nationals, Mukhtar Kechik, and Fahimi Fisal were charged in February 2009, in a 23-count indictment charging conspiracy, mail fraud, wire fraud, money laundering and tax evasion on a $65 million “ponzi” scheme. At the sentencing hearing U.S. District Judge James L. Robart said the investments “were triggered by outright misrepresentations … and ruined people’s lives.”
Micacle operated a variety of companies allegedly involved in oil development in Indonesia. Micacle and his co-defendants represented to investors that various companies were making money from oil field development and services on oil and gas fields in Indonesia. In fact, the proceeds of later investors were used to pay off the investments of earlier investors in the form of a “ponzi” scheme.
Between September 2004 and October 2007, Micacle took in more than $65.3 million and paid out $36.7 million as dividends to investors. The bulk of the remaining funds were used to develop oil and gas fields in Indonesia, as well as to pay for a lavish lifestyle for Micacle. In pleading guilty MIRACLE admits that he used the mail to send investors fraudulent statements, certificates and to send and receive funds involved in the scheme.
In his plea agreement, Micacle admitted he owes the U.S. Treasury $326,650 in back taxes from 2003-2005. Micacle admitted that in 2005, he transferred more than $500,000 from the company accounts to his personal bank accounts for his own use. Micacle claimed these transfers were “loans,” and claimed his actual income for the year was only $32,000. Micacle under reported his income by some $530,000, avoiding taxes of nearly $150,000.
In his plea agreement, Micacle agreed to pay restitution to the investors as well as to the United States for back taxes. Micacle agreed to forfeit a 2 carat diamond ring he purchased for more than $38,000 and a painting purchased in Italy for $27,000.
Kechik Fisal remain fugitives who have yet to appear for arraignment on the indictment.
